TMI Blog2017 (11) TMI 2038X X X X Extracts X X X X X X X X Extracts X X X X ..... the aggregate of the incomes under other heads and the provisions for set off and carry forward under Sections 70, 72 and 74 of the Act, would be premature for application of Section 10A. It can be further culled out from the said judgment that, deductions under Section 10A of the Act would be prior to the commencement of the exercise to be undertaken under Chapter VI of the Act, for arriving at the total income of the assessee from the gross total income. The Supreme Court also termed the use of words, total income of the assessee under Section 10A as somewhat discordant and held that the said expression has to be construed as a total income of the undertaking. Decided in favour of assessee. Income u/s 10A is an exemption or dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds ground No. 6.1, the Commissioner of Income Tax (for short, CIT ) passed an order in exercise of his revisional powers under Section 263 of the Act, revising the assessment made by the Assessing Officer, on the limited issue. He has delineated this issue as under: On verification of assessment record, it was observed that the assessee had brought forward business loss to the extent of Rs.1,26,68,529/- (depreciation loss Rs.42,80,324/- and business loss of RS.83,88,205/-). The assessee was allowed exemption to the tune of Rs.6,05,63,431/- u/s. 10A without setting off of brought forward losses of Rs.1,26,68,529/- 5. In his revisional order, the CIT has computed the gains/profits under Section 10A of the Act, after taking into consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcise of the assessee from the gross total income. The somewhat discordant use of the expression total income of the assessee in Section 10-A has already been dealt with earlier and in the overall scenario unfolded by the provisions of Section 10-A the aforesaid discord can be reconciled by understating the expression total income of the assessee in Section 10-A as total income of the undertaking . For the aforesaid reasons, we answer the appeals and the questions arising therein, as formulated at the outset of this order, by holding that though Section 10-A as amended, is a provision for deduction, the stage of deduction would be while computing the gross total income of the eligible undertaking under Chapter IV of the Act and n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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